Exhibit 4(b)(iii)(C)
[JOHN HANCOCK LOGO] Life Insurance Company of New York
ENDORSEMENT
"The Code" means the Internal Revenue Code of 1986 as amended.
If this Endorsement is issued as part of an individual annuity contract, the
terms "Owner" and "Contract" as used in this Endorsement shall have the same
meaning as such terms are used in the individual annuity contract. If this
Endorsement is issued in connection with a group annuity contract, the term
"Contract" as used in this Endorsement shall refer to the Certificate and the
term "Owner" as used in this Endorsement shall refer to the owner of the
Certificate.
As requested by the Owner to satisfy Section 408 of the Code, it is agreed by
the Owner and the Company that:
(1) Your Contract is not transferable by the Owner and shall not be: (a) sold,
(b) assigned, (c) discounted, or (d) pledged as collateral for a loan or
for any other purpose, except to the Company, unless as part of a divorce
settlement of which the Owner is a party.
(2) The interest of the Owner in the Contract is nonforfeitable at all times.
The Contract is established for the exclusive benefit of the Owner or his
or her beneficiaries.
(3) (a) Except in the case of a rollover contribution (as permitted by
Internal Revenue Code Sections 402(c), 402(e) (6), 403(a) (4),
403(b) (8), 403(b) (10), 408 (d) (3) and 457 (e) (16) or a
contribution made in accordance with the terms of a Simplified
Employee Pension (SEP) as described in Section 408(k), no
contributions will be accepted unless they are in cash, and the
total of such contributions shall not exceed:
$3,000 for any taxable year beginning in 2002 through 2004;
$4,000 for any taxable year beginning in 2005 through 2007; and
$5,000 for any taxable year beginning in 2008 and years thereafter.
After 2008, the limit will be adjusted by the Secretary of the
Treasury for cost-of-living increases under Code Section 219(b) (5)
(C). Such adjustments will be in multiples of $500.
No contributions may be made to your Contract once annuity payments
have begun.
(b) In the case of an individual who is 50 or older, the annual cash
contribution limit is increased by:
$500 for any taxable year beginning in 2002 through 2005; and $1,000
for any taxable year beginning in 2006 and years thereafter.
(c) No contributions will be accepted under a SIMPLE IRA plan
established by any employer pursuant to a Section 408(p). Also, no
transfer or rollover of funds attributable to contributions made by
a particular employer under its SIMPLE IRA plan will be accepted
from a SIMPLE IRA, that is, an IRA used in conjunction with a SIMPLE
IRA plan, prior to the expiration of the 2-year period beginning on
the date the individual first participated in that employer's SIMPLE
IRA plan.
02TRADIRA 1
(4) Notwithstanding any provision of this Contract to the contrary, the
distribution of the Owner's interest (value of the annuity) shall be made
in accordance with the requirements of Section 408(b)(3) of the Code and
the regulations thereunder, the provisions of which are herein
incorporated by reference. The entire interest of the Owner will be
distributed or commence to be distributed, no later than the first day of
April following the calendar year in which the Owner attains age 70 1/2
(required beginning date), over: (a) the life of the Owner, or the lives
of the Owner and his or her designated beneficiary; or (b) a period
certain not extending beyond the life expectancy of the Owner, or the
joint and last survivor expectancy of the Owner and his or her designated
beneficiary. Payments must be made in periodic payments at intervals of no
longer than one year. In addition, payments must be either nonincreasing
or they may increase only as provided in Q&As-1 and -4 of section
1.401(a)(9)-6T of the Temporary Income Tax Regulations. In addition, any
payment must satisfy the incidental benefit requirements specified in
Q&A-2 of section 1.401(a)(9)-6T. The distribution periods described above
cannot exceed the periods specified in section 1.401(a)(9)-6T.
The first required payment can be made as late as April 1 of the calendar year
following the calendar year in which the Owner attains age 70 1/2 and must be
the payment that is required for one payment interval. The second payment need
not be made until the end of the next payment interval.
(5) If the Owner dies before the entire interest is distributed, the following
distribution provisions shall apply:
(a) Distributions Beginning Before Death. If the Owner dies on or after
required distributions of his or her interest have commenced, the
remaining portion of such interest will continue to be distributed
under the settlement option chosen.
(b) Distributions Beginning After Death. If the Owner dies before
required distribution of his or her interest begins, his or her
entire interest shall be distributed at least as rapidly as follows:
(i) If the designated beneficiary is someone other than the
Owner's surviving spouse, the entire interest will be
distributed under an available settlement option, starting by
the end of the calendar year following the calendar year of
the Owner's death, over the remaining life expectancy of the
designated beneficiary, with such life expectancy determined
using the age of the beneficiary as of his or her birthday in
the year following the year of the Owner's death, or, if
elected, in accordance with paragraph (b) (iii) below.
(ii) the Owner's sole designated beneficiary is the Owner's
surviving spouse, the entire interest will be distributed
under an available settlement option, starting by the end of
the calendar year following the calendar year of the Owner's
death (or by the end of the calendar year in which the Owner
would have attained age 701/2, if later), over such spouse's
life, or, if elected, in accordance with paragraph (b) (iii)
below. If the surviving spouse dies before required
distributions commence to him or her, the remaining interest
will be distributed, starting by the end of the calendar year
following the calendar year of the spouse's death, over the
spouse's designated beneficiary's remaining life expectancy
determined using such beneficiary's age as of his or her
birthday in the year following the death of the spouse, or, if
elected, will be distributed in accordance with paragraph (b)
(iii) below. If the surviving spouse dies after required
distributions commence to him or her, any remaining interest
will continue to be distributed under the contract option
chosen.
(iii) If there is no designated beneficiary, or if applicable by
operation of paragraph (b) (i) or (b) (ii) above, the entire
interest will be distributed under an available settlement
option by the end of the calendar year containing the fifth
anniversary of the Owner's death (or of the spouse's death in
the case of the surviving spouse's death before distributions
are required to begin under paragraph (b) (ii) above).
2
(iv) Life expectancy is determined using the Single Life Table in
Q&A-1 of Section 1.401(a)(9)-9 of the Income Tax Regulations.
If distributions are being made to a surviving spouse as the
sole designated beneficiary, such spouse's remaining life
expectancy for a year is the number in the Single Life Table
corresponding to such spouse's age in the year. In all other
cases, remaining life expectancy for a year is the number in
the Single Life Table corresponding to the beneficiary's age
in the year specified in paragraph (b)) (i) or (ii) and
reduced by 1 for each subsequent year.
(c) The "interest" in the Contract includes the amount of any
outstanding rollover, transfer and recharacterization under Q&As-7
and -8 of Section 1.408-8 of the Income Tax Regulations and the
actuarial value of any other benefits provided under the Contract,
such as guaranteed death benefits.
(d) For purposes of paragraphs 5(a) and 5(b) of this Endorsement,
required distributions are considered to commence on the Owner's
required beginning date or, if applicable, on the date distributions
are required to begin to the surviving spouse under paragraph (b)
(ii) above. However, if distributions start prior to the applicable
date in the preceding sentence, on an irrevocable basis (except for
acceleration) under an annuity contract meeting the requirements of
Section 1.401(a)(9)-6T of the Temporary Income Tax Regulations, then
required distributions are considered to commence on the annuity
starting date.
(e) If the sole designated beneficiary is the Owner's surviving spouse,
the spouse may elect to treat the Contract as his or her own. This
election will be deemed to have been made if such surviving spouse
makes a contribution to the Contract or fails to take required
distributions as a beneficiary.
(6) The Owner and Annuitant under your Contract are and will continue to be as
shown in the application.
(7) The Owner may satisfy the minimum distribution requirements under section
408(a)(6) and 408(b)(3) of the Code by receiving a distribution from one
IRA that is equal to the amount required to satisfy the minimum
distribution requirements for two or more IRAs. For this purpose, the
owner of two or more IRAs may use the 'alternative method' described in
Notice 88-38, 1988-1 C.B. 524, to satisfy the minimum distribution
requirements described above. This section does not apply to Roth IRAs.
(8) The Company shall furnish annual calendar year reports concerning the
status of your Contract and such information concerning required minimum
distributions as is prescribed by the Commissioner of the Internal
Revenue.
(9) In the event of any conflict between the terms of this endorsement and the
provisions of your Contract, the terms of this endorsement shall control.
(10.) This endorsement may be amended as necessary to comply with the provisions
of the Code and the related regulations.
SIGNED FOR THE COMPANY AT BOSTON, MASSACHUSETTS
/s/ Emanuel Alves
-------------------------------------
Secretary
3